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[ 25 ] 

REPORT 

OF 

THE SECRETARY OF WAR, 

OF 

A SYSTEM, PROVIDING FOR THE ABOLITION 

OF THE 

EXISTING INDIAN TRADE ESTABLISHMENT* 

OF THE 

UNITED STATES, 

AND 

PROVIDING FOR THE OPENING OF THE TRADE 

YVfr H 

THE INDIANS TO INDIVIDUALS, 

UNDER SUITABLE REGULATIONS. 

// ' , i) 

1 li/iu i-f ^l i,4 'U 


December 8, 1818. 

Read, and referred to the committee on Indian Affairs. 


WASHINGTON:* 4 !,, 


PRINTED BY E. DEKk’AFFT, 1 



















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REPORT 


Of the Secretary of War , of a system , providing for the abolition of the 
existing Indian trade establishments of the United States , and pro¬ 
viding for the opening of the trade with the Indians to individuals > 
under suitable regulations . 


DEPARTMENT OF WAR, 

December 5,1818* 


SIR, 

In compliance with a resolution of the House of Representatives, 
of the 4th of April, 1818, directing the Secretary of War to prepare 
and report, at their next session, “ a system providing for the aboli¬ 
tion of the existing Indian trade establishments of the United States, 
and providing for the opening of the trade with the Indians to indi¬ 
viduals, under suitable regulations,” l have the honor to make the 
following report: 

The nations of Indians, who inhabit this portion of our continent, 
were, on its first discovery, in a state of the most perfect commercial 
independence. Their knowledge of the useful arts, was indeed, very 
limited; but it was commensurate with their wants and desires. 
With their rude implements of husbandry, their hook, and bow. in 
the construction of which they were well instructed, they drew a 
scanty, but for them, a sufficient supply from the soil, the water, and 
the forest. A great change has since taken place, such as appears to 
be inevitable, by a fixed law of nature, in the intercourse between a 
civilized and savage people. Helplessness has succeeded indepen¬ 
dence. While their wants have been greatly multiplied and enlarg¬ 
ed, by their intercourse with their more civilized neighbours, their 
knowledge, even of their former rude arts, has been lost, without ac¬ 
quiring those which are necessary in their new condition. The manu¬ 
facture of the axe and the hoe, by which they now clear and cultivate 
the soil; and the gun and ammunition, by which they take their game, 




4 , [ 25 ] 

are far above their skill; and with the exhaustion of the present stock, 
without a new supply, they would be reduced to extreme want. On 
trade then, with those from whom they can draw these and other 
supplies, they are wholly dependant. We have the exclusive right 
to trade with those within our limits; and cut off as the southern 
tribes are, by our acquisition in the late war, from intercourse with 
foreigners on the side of the Gulf of Mexico, we have the means, by a 
proper extension of our posts, on the lakes, the Mississippi, and the 
Missouri, (to effect which, measures have already been taken,) to en¬ 
force effectually, without much additional expense, this important 
right. The period seems then to have arrived, to give to our con¬ 
trol over the Indians, through an exclusive supply of their wants, the 
greatest efficiency; and to promote theirs, and our interest, by a judi- 
ous system of trade, fairly and justly directed. 

A similar view of this branch of our trade, seems to have been 
taken at an early period by our government. It directed its atten¬ 
tion to this interesting and important subject, as early as the year 
1775, when a committee was appointed by Congress, to devise a plan 
for carrying on trade with the Indians. In the next year, a very con¬ 
siderable purchase of goods was directed to be made, for the Indian 
trade; and trade with them, except under license and bond, was 
strictly prohibited. The subject was frequently acted on, during 
the confederation; hut no systematic effort was made to regulate it, 
till 1786, when an ordinance was passed, dividing the Indian depart¬ 
ment into two districts, and appoint ing a superintendent, with a depu¬ 
ty to each. It was made their duty to execute such regulations, as 
Congress might establish in relation to Indian affairs; to correspond 
with the Secretary of War, through whom, their communications 
were directed to be made to Congress; to obey the instructions of the 
War Department; and to grant license to trade with Indians. This 
ordinance directed, that no license should be granted to foreigners, 
and only to citizens, whose good moral character should be certified, 
by the governor of a state, under the seal of the state, and that bonds 
should be given, to conform to established regulations. Licenses were 
granted, to continue in force for one year only, and upon the payment 
of fifty dollars. To trade without license, incurred a penalty of five 
hundred dollars, and forfeiture of goods. The superintendents and 
their deputies were prohibited from engag.ng in trade. 

The change in the form of the government, a few years after the 
passing of this ordinance, and the debility into which public affairs 
fell, about the termination of the confederation, prevented this judi¬ 
cious system from being carried into effect. 

Under the present constitution, the subject of Indian trade at¬ 
tracted the attention of Congress, as early as the year 1790. The 
system of trade by licenses was retained, which were directed tc be 
granted for two years, by persons to be appointed by the President, 
to applicants of good character, who gave bonds to conform to regu¬ 
lations; and to trade without license was subjected to a forfeiture of 


5 


£ 25 ] 

merchandise. The ^ct contains no prohibitions of foreigners, and 
requires nothing to be paid for the licenses. In the years 1793, and 
1796, acts were passed very similar in their provisions to the one 
just recited; and in the year 1802, an act repealing former acts, and 
which still continues in force, was passed. It inflicts a fine of one 
hundred dollars, and imprisonment not exceeding thirty days, in ad¬ 
dition to the forfeiture of goods for trading without license; and di¬ 
rects licenses to be granted on bond, with sufficient security to con¬ 
form to law and regulations, without making a good character, or 
citizenship a requisite. 

By an act of 1816, the last passed on this subject, foreigners are 
prohibited from trading with the Indians, except permitted by the 
President, and under such regulations as he should establish. In¬ 
structions have been given under this act to prohibit foreigners from 
passing into the Indian country, except as boatmen, and, under cer¬ 
tain conditions, as interpreters. 

The system of trade by public factors, now proposed to be 
abolished, commenced in the year 1796; but without superceding the 
original mode of carrying on the trade by license. The President 
was authorized to establish trading houses, and to appoint an agent 
to each house to carry on, as the act states, “ a liberal trade with the 
Indians.” The act appropriated § 150,000, as the capital of this 
trade, and the additional sum of $ 8,000 annually for the payment of 
agents and clerks; and directed the trade to be carried on, so as not 
to diminish the capital. It was limited to two years; bui was by a 
subsequent act continued in force till 1806. A superintendent of In¬ 
dians was then appointed, and the capital increased to S 260,000, and 
S5 13,000 was annually appropriated for the payment of superinten¬ 
dent, agents, and clerks. This act was limited to three years; but 
afterwards continued in force till 1811. The capital was then in¬ 
creased to three hundred thousand dollars, with an annual appro¬ 
priation of S 19,250 for the payment of superintendent, agents, and 
clerks. It was limited to three years; but has been extended by sub¬ 
sequent acts to the first of March next. 

The capital at present is distributed among eight trading houses, 1 
or factories, established at the following places: fort Mitchell, the 
Chickasaw Bluffs; fort Confederation, on the Tombigbee; fort Osage, ' 
on the Missouri; Prairi du Chien, on the Mississippi; Sulphar Fork, 
on Red Rive; Green Bay, and Chicago. 

Such is the rise, progress, and present condition of our Indian 
trade. It was commenced, and has been continued from motives 
both of prudence and humanity; and though it may not have fully 
realized the expectations of its friends, it has no doubt produced 
beneficial effects. If wars have not been entirely prevented by it, 
they, probably without it, would have been more frequent; and, if 
the Indians have made but little advances in civilization, they proba¬ 
bly without it would have made less. If greater effects have not re¬ 
sulted, it is to be attributed not to a want of dependence on the part 


6 


[ 25 ] 

of the Indians on commercial supplies, but to defects in the system 
itself, or in its administration. Scarcely any attempt has been made 
till lately to exclude foreigners, and the granting of licenses, has not 
been subject to those checks, which are necessary to give to it the 
most alutary effects. 

Should it be thought unadvisible to continue the present trading 
system by factories, by permitting the act to expire, by its limitation, 
on the first of March next, it will then of course terminate. In 
winding up its concerns, two points are to be regarded; to sustain as 
little loss as possible; and to withdraw from the trade gradually, in 
order that the capital employed, may be supplied from other sources. 
To effect both of these objects, I would suggest, that so much 
of the act of 1811, as authorizes the appointment of a superinten¬ 
dent and factors, be continued in force for one year; and that they 
be authorized to make sales, as heretofore, of the goods and effects 
on hand, and those which may be acquired trom the Indians. 

The superintendent of Indian trade should also be authorized 
and directed to exhibit at his office, for inspection, an inventory of 
the stock in trade, with the property attached to the respective facto¬ 
ries; and he should be directed to sell the same on the best terms 
offered, provided the sales can be effected at cost and charges. It 
would be proper to allow considerable credit upon approved bonds 
and security; and the President ought to be empowered to annex, as 
the condition of the sale, if he should think it advisible, to sell the 
goods to the Indians, at the place at which the factory is established; 
provided, the sales can be effected within the period of one year. 
The factory at fort Clarke, being established by a treaty with the 
Great and Little Osages in the year 1808, must be continued by the 
government, or sold out subject to the condition of being continued 
so long as the Indians may desire it. It would perhaps be advisable 
to direct a new treaty, rescinding on suitable compensation the stipu¬ 
lation referred to. 

The establishment would by these means terminate gradually, 
without the hazard of any considerable losses. 

To provide for opening the trade to individuals, under suitable 
regulations, is a task of much greater difficulty- The vast extent of 
the couutry inhabited by the Indians; and the numbers, and variety of 
the tribes, render it impossible to apply, with propriety, any one 
uniform system to the whole. The various tribes for the purpose of 
trade may, however, be comprehended in tw r o classes. Those in 
our immediate neighborhood, surrounded by our settlements and 
our military posts, and who from long intercourse with us, have be¬ 
come partially civilized; and those more remote, who still retain 
their original character and customs In the former are compre¬ 
hended the four southern tribes, the Osages and the small tribes im¬ 
mediately west of the Mississippi, those within the limits of Illi¬ 
nois. Indiana, Ohio, and that part of the Michigan territory, east of 
lake Michigan. The latter comprehends all of the tribes without 


7 


[ 25 ] 

those limits. I propose to consider the system of trade best calcu¬ 
lated for each division beginning with the former. 

After giving the subject that full consideration which its impor¬ 
tance merits, it appears to me, that the provisions of the ordinance of 
1786, with a few additions and modifications, particularly in the ad¬ 
ministrative part, so as to adjust it to our present form of govern¬ 
ment are, for this division of our Indian trade, the best that can be 
devised. The provisions of the acts, now in force in relation to li¬ 
censes, are not as well guarded, or as efficient, as those of the ordi¬ 
nance referred to. The introduction of the factories seems to have 
relaxed the attention of government to the system of trade under 
license. I would then propose to assume the provisions of the ordi¬ 
nance referred to, as the basis of a system to open the trade with the 
contigious tribes of Indians, to individual enterprise. Instead how¬ 
ever of appointing two superintendents, I would propose a superin¬ 
tendent of Indian affairs to be attached to the War Department, with 
a salary of g 3,000 per annum. The superintendent to be under the 
control of the Secretary of War, and to be charged, subject to such 
regulations as the President may prescribe, with the correspondence, 
superintendence, and general managemen: of Indian affairs; and to 
be authorized, with the approbation of the Secretary of War, to 
grant license to trade with the Indians. Licenses to be granted to 
citizens of good moral character, and to continue in force till revok¬ 
ed. A sum not less than one hundred dollars, nor more than five 
hundred dollars, to be determined under regulations to be prescribed 
by the President, to be paid, for the privilege of using it, at the time 
of granting the license, and annually during its continuance; and 
bonds with sufficient security to be taken to conform to law and regu¬ 
lations. Licenses to be revoked by the President whenever he may 
judge proper. To trade without license, to subject to a fine not ex¬ 
ceeding one thousand dollars, and imprisonment not to exceed six 
months; with a forfeiture of the goods Licenses to be granted to 
trade at specified places, to be selected by the applicants, and not to be 
changed without the consent of the superintendent. All peddling and 
sales of spirituous liquors to be strictly prohibited. Each trading 
house, or establishment, to require a separate license; and books to 
be kept at the establishment, in which the prices of the goods sold, 
and the articles purchased, should be regularly and fairly entered; 
and to be subject at all times to the inspection of the Indian agent, or 
such persons as the superintendent may appoint. 

The reasons for most of these provisions are so obvious, as to 
require no illustration. They will all be passed over, accordingly, 
without observation, except the provisions, which requires the pay¬ 
ment of an annual sum for the use of license; and that which require 
the trading establishment to be fixed, The former provision is taken 
from the ordinance of 1786, which directed licenses to be granted 
for one year only, and on payment of fifty dollars to the superinten¬ 
dent for the use of the United States; a sum nearly equal to that now 


8 [ 25 ] 

proposed, if the value of money at that time be taken into con¬ 
sideration. 

But it will probably be objected, that it is our interest, and as 
we propose to monopolise their trade, our duty too, to furnish the 
Indians with goods, on as moderate terms as possible; and that the 
sum to be paid for a license, by acting as a duty on the goods sold 
under it, will tend to enhance their price. In answer to which it 
may be justly observed, that it is not a matter of so much import¬ 
ance, that they should obtain their supplies for a few cents more or 
less, as that the trade should, as far as practicable, be put effectually 
under the control of the government, in order, that they may be pro¬ 
tected against the fraud and the violence to which their ignorance 
and weakness would, without such protection, expose them. It is 
this very ignorance and weakness, which render it necessary for the 
government to interfere; and if such interference is proper at all, it 
ought to be rendered effectual. Such will be the tendency of this 
provision. Its first, and obvious effects, will be to diminish more 
certainly, and with less injurious effect, than any other provision 
which can be devised, the number of traders; and to increase the 
amount of capital which each would employ. The profit of a small 
capital of a few' hundred dollars, would scarcely pay for the license; 
while that on a large one, would not be much diminished By it. 
Both of these effects, the diminution of the number of traders, and 
the increase of the capital, would add greatly to the control of the go¬ 
vernment over the trade. It would be almost impossible to inspect 
the copduct, and consequently control the actions of the multitude of 
traders, with small capitals, diffused over the Indian country, and set¬ 
tled at remote and obscure places. The greatest vigilance, on the 
part of the superintendent and his agents, would be unequal to the 
task. By diminishing the number, and bringing each more perma¬ 
nently before the view of the government, a due inspection and super¬ 
intendence becomes practicable. Again, what control can the govern¬ 
ment have over the conduct of a trader, with a capital of a few hun¬ 
dred dollars only? Suppose he should violate the express injunctions 
of law and regulations; what serious loss would he sustain by revok¬ 
ing his license, or by putting his bond in suit? To him it would be 
nothing to wind up his business, and give his capital another direc¬ 
tion; and as to the bond, in such distant and obscure transactions, 
he might pretty safely calculate on escaping its penalty. Very dif¬ 
ferent would be the case, with the trader of a large capital. To re¬ 
voke his license^ would be a serious evil, which must subject him to 
certain loss; and should he break the conditions of his bond, he would 
be much more in danger of feeling its penalty. The control of the 
government would not only be greater over such traders, but what is 
of equal importance, their influence with the Indians, would have a 
more salutary direction. A war, between them and us, would, in all 
cases, be injurious, and in many cases, would be ruinous to the tra¬ 
der of a large capital; but not so, with one of small capital. A siiw 


9 


[ 25 ] 

gle profitable speculation may be of more importance to him, than 
the continuance of peace. From the effects of war, he can as easily 
escape,as from the revocation of his license,or the penalty of his bond. 
Let the character of the former be what it may, he must, from inter¬ 
est, be the advocate of peace, and the influence of his own govern¬ 
ment; while the latter, unless influenced by virtuous motives, would 
feel in either but little interest. 

From the nature of the trade, the more it can be concentrated, 
provided, there is reasonable competition, the better it will be for the 
Indians and ourselves. The very opposite, it is true, would be the 
fact, if they had the capacity and intelligence to take care of their own 
interest, without our protection; but situated as they are, indefinite 
competition would be no less injurious to them, than to our citizens; 
and such appear to be their sentiments. The Chickasaws, in a late 
treaty, complained of the injury which they had sustained, from ped- 
dlars and small traders; and they had a stipulation inserted, against 
the granting of any license to trade with their nation, as the only ef¬ 
fectual means which suggested itself to prevent it. 

The reasons for fixing the trading establishments, are no less 
strong. By rendering them stationary, and compelling the proprie¬ 
tor to keep books, containing regular entries of all their sales and 
purchases, important checks will be presented to prevent fraud and 
exorbitant charges. It will also strongly tend to prevent collision 
between the traders, and, consequently, the creation of parties among 
the Indians, for or against particular traders; a state of things un¬ 
friendly to their interest,and dangerous to the peace of the frontier. Be¬ 
sides, the trading establishments being fixed, as they will be, in the 
most advantageous positions, will, in time, become the nucleus of In¬ 
dian settlements, which, by giving greater density and steadiness to 
their population, will tend to introduce a division of real property, 
and thus hasten their ultimate civilization. 

Such are the provisions under which the trade with those tribes 
of Indians in our immediate neighborhood, may with safety and ad¬ 
vantage be opened to individual enterprise. With a vigilant admin¬ 
istration, it will produce results equally salutary to the Indians and 
ourselves. In fact, the knowledge of the use of money, and the pri¬ 
ces of most of the ordinary articles of trade, is so far advanced among 
them, as to guard them, to a considerable extent, against mere fraud 
and imposition; and with the control, which the government may ex¬ 
ercise over the trade with them, they would generally receive their 
supplies on fair and moderate terms. The system is not less calcu¬ 
lated to secure peace. The regular traders, who have paid for the 
use of their licenses, will be the most active to prevent vexatious 
peddling and retailing of spirituous liquors,which are the bane of the 
frontier. They will, besides, become the most active promoters of 
industry, for the almost total destruction of game has rendered the 
amount of peltries and furs of little value in this branch of Indian 
trade, and the capacity of paying for the goods purchased, must con- 
2 


sequently in a great measure, depend on the proceeds of the soil. 
In fact the neighboring tribes are becoming daily less warlike, and 
more helpless and dependent on us through their numerous wants, 
and they are rendered still more pacific by the fear of forfeiting their 
lands and annuities. They have in a great measure ceased to be an 
object of terrpr, and have become that of commisseration. The 
time seems to have arrived, when our policy towards them should 
undergo an important change. They neither are in fact, nor ought 
to be considered as independent nations. Our views of their inter¬ 
est, and not their own, ought to govern them By a proper combina¬ 
tion of force and persuasion, of punishments and rewards, they ought 
to be brought within the pales of law and civilization. Left to them¬ 
selves, they will never reach that desirable condition. Before the 
alow operation of reason and experience, can convince them of its 
superior advantages, they must be overwhelmed by the mighty tor¬ 
rent of our population. Such small bodies with savage customs and 
character, cannot, and ought not, to be permitted to exist in an inde¬ 
pendent concution in the midst of civilized society. Our laws and 
manners ought to supercede their present savage manners and cus¬ 
toms. Beginning with those most advanced in civilization, aud sur¬ 
rounded by our people, they ought to be made to contract their set¬ 
tlements within reasonable bounds, with a distinct understanding, 
that the United States intended to make no further acquisition of land 
from them, and that the settlements reserved are intended for their 
permanent home. The land ought to be divided amongfamilies; and 
the idea of individual property in the soil carefully inculcated. Their 
annuities would constitute an ample school fund; and education, com¬ 
prehending as well the common arts of life, as reading, writing, and 
arithmetic, ought not to be left discretionary with the parents. Those 
who might not choose to submit, ought to be permitted and aided in 
forming new settlements at a distance from ours. When sufficient¬ 
ly advanced in civilization, they would be permitted to participate in 
such civil and political rights, as the respective states within whose 
limits they are situated, might safely extend to them. It is only by 
causing our opinion of their interest to prevail, that they can be ci¬ 
vilized and saved from extinction. Under the present policy, they 
are continually decreasing and degenerating; notwithstanding the 
government has, under all of its administrations, been actuated jby the 
most sincere desire to promote their happiness and civilization. The 
fault has been, not in the want of zeal, but in the mode, which it has 
been attempted to effect these desirable objects. The Indians are 
not so situated as to leave it to time and experience to effect their 
civilization. By selecting prudently the occasion for the change, by 
establishing a few essential regulations, and by appointing persons to 
administer them fairly and honestly, our efforts could scarcely fail of 
success. Nor ought it to be feared, that the power would be abused 
on our part, for, in addition to the dictates of benevolence, we have 


11 


[ 25 ] 

a strong interest in their civilization. The enmity, even of the fron¬ 
tier settlers towards 'hem, is caused principally by the imperfection 
of the present system, and under the one which I have suggested, it 
will greatly abate, if not entirely subside. The natural humanity and 
generosity of the American character, would no longer be weakened 
by the disorders and savage cruelty to which our frontiers are now 
exposed. A deep conviction of the importance of the subject, and a 
strong desire to arrest the current of events, which if permitted to 
flow in their present channel, must end in the annihilation of those 
who were once the proprietors of this prosperous country, must be 
my apology for this digression. 

It remains to consider in what manner our trade can be the most 
successfully prosecuted, with the numerous Indian tribes, who occu¬ 
py the vast region extending west to the Pacific Ocean. It is ob¬ 
vious that the system proposed for the partially civilized tribes, bor¬ 
dering on our settlements, would prove altogether inadequate tp this 
branch of our Indian trade, it will require a system of far more 
energy to effect the great objects, which ought to be pursued through 
it. To establish a decided control over the numerous and savage 
tribes within these vast limits, and to give to our trade with them 
its utmost extension, are deemed to be objects of great national im¬ 
portance. It is believed that within our limits, along the range of the 
Ilockey Mountain, quite to the Mexican frontier, is the best region 
for fur and peltries on this continent. "With proper efforts, the 
whole of this valuable trade extending quite across to the great wes¬ 
tern ocean, would, in a few years, be exclusively in our possession. 
To produce these desirable results, foreign adventurers, whose in¬ 
fluence must at all times be hostile to our interest, and dangerous to 
our peace, must be excluded. With this view, and to prutect our 
own trade, means have been taken to extend our military posts on the 
Mississippi and Missouri. Whatever character our trade in that 
quarter may assume, the extension of our posts, as contemplated, 
will be indispensable to its enlarged and successful prosecution; but 
it is believed that with all of the advantages, which they will afford, 
unless the trade be properly and efficiently organized, we shall not be 
able to compute, with entire success, with the British companies on 
the north, nor to acquire that decided control over the Indians, which 
is indispensable to its complete success. 

In order to have just ideas op this subject, it is necessary to take 
into consideration, not only the vast extent and remoteness of the 
region, over which, it is proposed to extend our trade, but the char¬ 
acter of the numerous tribes, who inhabit it. They are all more or 
less migratory; in the summer moving towards the north, and in the 
winter to the south, in pursuit of the Buffalo, and other game. They 
are thus, in the summer, brought into the neighborhood of the Bri¬ 
tish establishments to the north of our limits, where, notwithstand¬ 
ing our military posts and the advantage of our position, much of 


12 


[ 25 ] 

the trade and influence over these fierce and warlike tribes will cen¬ 
ter, unless our means of carrying it on should be as well organized 
and efficient as theirs. The difficulty, though of an opposite kind, is 
no less considerable on the southern frontier, of this portion of our 
country. The line between us and the Spanish possessions in Mexi¬ 
co, is in its whole extent a subject of discussion; and even should it 
be adjusted, will probably, to a considerable extent, be without natu¬ 
ral and visible boundaries. To a trade thus situated, extending over 
so vast a region, inhabited by numerous tribes not less warlike than 
savage, with the competition of powerful and long established com¬ 
panies, on one side, and danger of collision on the other, the unor¬ 
ganized efforts of individuals, always with jarring, and frequently 
with opposing, interest, appear to be wholly inadequate to its success¬ 
ful, or safe prosecution. The rivalry of trade, which in well regu¬ 
lated communities, gives the greatest prosperity to commerce 4 would, 
in these distant regions, beyond the control of law, or superior au¬ 
thority, amongst fierce and ignorant savages, lead to the most fatal 
consequences. Each trader, or association of traders would endea¬ 
vor to monopolize the trade within certain limits, and would exert 
their cunning and influence to render the savages their partizans, and 
the enemy of their rivals in trade. Among a people at once so fierce 
and so easily duped, the result may be readily anticipated. A state 
of disorder and violence would universally prevail, equally unfortu¬ 
nate to the Indians and ourselves; and which would strongly tend to 
turn the trade, and with it the influence over the Indians to the well 
organized foreign fur companies near our limits. 

If these observations are correct; if the uncombined efforts of 
individuals are inadequate to a successful competition with the Bri¬ 
tish fur companies; if they will endanger our peace with our southern 
neighbors, and lead to fierce and dangerous rivalry among them¬ 
selves, it only remains to consider, whether a mode can-be dev ised 
ot carrying on this branch of our Indian trade, which will obviate 
these evils, and accomplish the desirable objects of giving the great¬ 
est extension to it, accompanied with the most efficient control over 
the Indians themselves, 

The united influence and combined efforts of the fur companies 
referred to, can he met successfully, it is believed, only by an equal 
concentration of influence, and efforts on our part; the jealous ri¬ 
valry of independent traders,with its fatal consequences,can be obviat¬ 
ed only by removing the diversity of interest by which it would be 
excited, and the danger of collision, on our southern limits, by sub¬ 
jecting the trade completely to the will and control of the govern¬ 
ment. The mode then, which I would propose would be to vest 
the trade in a company with sufficient capital; to be divided into 
shares of one hundred dollars each; and to be limited to the term of 
twenty years; to pay an annual tax on its subscribed capital, for the 
privilege of exclusive trade, and to be subject, in like manner., as pri¬ 
vate traders, to such rules and regulations as may be prescribed. T 


13 


[ 25 ] 

is thus that most of the evils to be apprehended by leaving the trade 
open to the competition of private adventurers would, it is believed* 
be avoided. The efforts of the company, undisturbed by rival in¬ 
terests, would be directed to establish its control over the various 
tribes of Indians to exclude foreign adventurers, and to give the 
greatest degree of profits to its trade. The success of such a com* 
pany, properly conducted, scarcely admits of a doubt. Our position 
in regard to this trade; the facility which the navigation of our great 
and numerous rivers in that quarter would afford; and the protection 
from our military posts, would speedily destroy all foreign competi¬ 
tion, and would, in a few years, push our trade to the Pacific Ocean, 
The most profitable fur and peltry trade in the world would be ours, 
accompanied with a decided influence over the numerous and warlike 
tribes inhabiting those extensive regions. The mere objection, that 
it would create a monopoly ought not to outweigh so many advan¬ 
tages. The trade with the Indians has never been opened, without 
restrictions to our citizens. Licenses from the government have 
at all times been required; and the government has itself, thought its 
factories, to a considerable extent, monopolized ihe tiade; and by an 
extension of its capital only, might engross the whole of it. All of 
these provisions, however necessary, in the Indian trade, would be 
absurd in any other branch of our commerce. Besides, the profit of 
the trade with the Indians, has,at all times, been confined to a few in¬ 
dividuals; and it is highly probable that a greater portion of the 
community would participate in it by carrying it on in the manner 
proposed, than in any other mode. In fact, absurd as commercial 
monopoly would be, where law and authority exist to repress the 
mischievous effects, which might spring from unbounded rivalry, and 
to give to such rivalry, salutary consequences; just in the same de¬ 
gree, would it be wise and advantageous to carry on the trade under 
consideration, by an incorporated company. A nation, discovers its 
wisdom no less in departing from general maxims, where it is no lon¬ 
ger wise to adhere to them, than in our adherence to them in ordina 
ry circumstances. In fact it evinces a greater effort of reason. The 
first advance of a nation is marked by the establishment of maxims, 
which are deemed universal, but which farther experience and re¬ 
flection teach to be only general, admitting of occasional modifica¬ 
tions and exceptions, 

Should the House however, not adopt these views, but prefer 
to open the trade to the enterprise of single individeals, or such as¬ 
sociations as might he formed for the purpose, l would suggest the 
provisions already proposed ior the trade with the neighboring tribes 
of Indians, as the most advisable, with the exception of the provi¬ 
sions, which require the trader to be located, and that regular books 
of sales and purchases should be kept. In lieu of which provisions, 
I would propose, that the goods intended for this branch oflndian 
trade, and the articles required by purchase from the Indians, should 
be entered under oath, the former with a copy of the invoice, and 


14 


[ 25 ] 

the latter,with a statement of prices, with the Indian agent at Mack- 
inaw, St. Louis, Belle Point, on the Arkansas river, or Natchitoches, 
on Red river; or such other places as the President may designate. 

The entry can be made without much inconvenience to the tra¬ 
der, as the geography of the country is such, as to make it necessary 
for the trade to pass by one or the other of the points proposed, at 
each of which there is now an agent. 

It is believed that these provisions would be as effectual as any 
that can be devised, short of a company incorporated for the pur¬ 
pose; but it is proper to observe, that they are open to the objections 
which have already been stated In fact they equally apply to any 
system, so long as the trade is exposed to the effects which must flow 
from the jealous rivalry of independent traders, where law and au¬ 
thority cannot step in to restrain its consequences within proper 
bounds. The Indians themselves are not the proper judges of their 
own interests, and so far from restraining the effects of such rivalry, 
they would become the instruments of the most cunning and vicious 
of the traders, to wreak their vengeance on such as might stand in the 
way of their profits. 

All which is respectfully submitted. 

.T. C. CALHOUN. 








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